The government is encouraging the industry to adopt electric-powered machinery to cut emissions and reduce dependence on fossil fuels, but the transition comes with its challenges.
09 Mar 2025 | 761 Views | By Yukta Mudgal
The automobile industry never tires of finding new ways to reduce its environmental impact, and its latest area of focus is construction equipment. The impact of this sector was brought to the forefront after India’s minister of road transport and highways, Nitin Gadkari, highlighted that a whopping 400 crore litres ...
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The automobile industry never tires of finding new ways to reduce its environmental impact, and its latest area of focus is construction equipment. The impact of this sector was brought to the forefront after India’s minister of road transport and highways, Nitin Gadkari, highlighted that a whopping 400 crore litres of diesel was consumed by the industry every year.
While the government is urging the industry to shift to electric-powered machinery to reduce emissions and reliance on fossil fuels, the journey is far from straightforward.
While tighter emission norms are inflating the cost of construction equipment on the one hand, the industry faces two main obstacles standing in the way of widespread electric vehicle (EV) adoption: the high cost of EV technology and the lack of supporting infrastructure.
“The problem with fully electric vehicles especially with big vehicles is the high cost of the battery which increases product cost by almost five times. So, the smaller the machine, the easier it is to do,” VG Sakthikumar, Chairman and Managing Director, Schwing Stetter told Autocar Professional.
“On the electric front, we are working on variable-frequency drive-motored pumps to bring down the cost further. It pays back the customer within five years,” Sakthikumar said. A VFD is a motor control device widely used in the construction industry to adjust the speed and torque of electric motors.
This way, the cost is fairly balanced, making it affordable for customers, he explained further. “If, in the future, the cost of lithium-ion and the battery goes down, then we can think of bigger (construction equipment) electric vehicles),” he noted. Another challenge is the lack of charging infrastructure, pointed out Sanjay Saxena, Chief Operating Officer, Sany India.
Meanwhile, the government is also promoting biofuels with a target of 5% biodiesel blending by 2030.
More Efficiency
Meanwhile, the construction equipment industry has adopted the new CEV Stage 5 norms, which impose strict limits on pollutants such as particulate matter (PM), particulate number (PN), nitrogen oxides (NOX), hydrocarbons (HC), and carbon monoxide (CO) for diesel engines in construction equipment.
According to ICRA, this adoption is likely to result in a price increase of around 12-15% for wheeled vehicles, which comprise 65-70% of the industry volume, and the impact will be visible in the next 12-18 months.
At the same time, it also pointed out the shift to CEV stage 5 norms is also providing additional features to improve productivity.
"By optimising engine performance and utilising smart, fuel-saving technologies, our CEV Stage 5 machines offer 10-15% fuel efficiency and reduced operating and maintenance costs,” said Deepak Shetty, CEO and Managing Director, JCB India.
In line with these emission norms, the industry leaders such as CASE Construction Equipment, JCB India, Sany India, Schwing Stetter and Tata Hitachi have come up with new models of compactors, pumps, and excavators that boost fuel efficiency by 15%.